Sen. Soles Helps Pass NC Beach Plan Reform

Raleigh – Senator R.C. Soles, Chair of the Senate Commerce Committee, oversaw Senate passage of legislation reforming the state coastal insurance wind pool, known commonly as the Beach Plan.  The legislation was needed to make sure insurance companies would continue insuring residents in 18 eastern counties and would not pull out because of unlimited liability due to a catastrophic hurricane.  The legislation caps damages, requires that the reserve in the Beach Plan continue to grow, mandates that insurance companies may not take profits from the Beach Plan, and spreads the risk statewide.

Over the last six years, homeowners’ insurance rates in the Beach Plan beach area have increased 90%.  The Senate version of this legislation will lower the rate increases that Beach Plan policies tack on to company rates to 5% and 15%, down from 10% and 20%.  The bill also reduces personal contents coverage under the Beach Plan from 70% to 40% and mandates that premiums reflect the reduction in contents coverage.

“This legislation will go a long way in making sure that the Beach Plan is sound and protecting homeowners from severe wind damage.  The recent rate increases have been unfair to people under the plan and this bill will give them some relief,” said Senator Soles.